[Author: Andrew Goodman, 01.2016 | Keywords: Executive Insight, Legislative Review]
This past summer, each of INEDA’s state legislative committees met to discuss policies for the 2016 legislative sessions. Following those committee meetings, our staff liaisons and lobbyists worked during the last few months to prepare for the upcoming legislative sessions. While the actual legislative sessions are only a few months long, preparations are almost a year-round process. Following is a partial listing of issues that we are working on for the upcoming session, although, additional items frequently pop up along the way.
Iowa: In Iowa, work continues on Iowa Code Section 423D dealing with excise tax on construction equipment. We are hoping for new language in the Iowa Code that would relieve responsibility from our members to pay the excise tax on construction equipment when it is placed into a rental fleet. The Iowa Department of Revenue (IDOR) currently contends that when a dealer purchases a piece of equipment and rents/leases it to a customer, the dealer should owe tax on the purchase price of the equipment. We are actively working with the IDOR and industry partners to clarify the language of the code.
Nebraska: We have participated in several discussions about LR317, a legislative study to review overweight farm equipment. Nebraska is one of only a few states that does not have an exemption in the state code for overweight implements of husbandry. This is not surprising when you consider that when the oversize (over-width) exemption to the code was written, overweight implements of husbandry were not an issue. At this point we are working together with the Cattleman’s Association, Farm Bureau, State Patrol, and some legislators to develop language to deal with this issue.
National: On the national legislative scene, we continue to work together with the Equipment Dealers Association (EDA) and the Associated Equipment Distributors (AED) on several issues. This includes working in opposition to those who want to eliminate Last In First Out (LIFO) accounting which would affect many of our dealers. In addition, we also support raising the Renewable Fuel Standard (RFS) back to its original level mandated by Congress in 2007.
Mark Your Calendars: The Iowa Legislative Reception will take place at the Iowa Power Farming Show on February 3. The Nebraska Legislative Breakfast will take place at the Nebraska Capitol on February 11. I encourage all of our members to participate in these important events to not only build relationships with legislators, but to support our industry as well.
About the Author
Andy has worked in the equipment industry for 47 years; 22 of those leading I-NEDA. His extensive knowledge and experience helps Andy guide our members through dealer-manufacturer relationships, complicated mergers and acquisitions, and legislative issues. When he’s not working, Andy enjoys riding his motorcycle, fishing, model railroading and spending time with his wife and grandchildren.